Small Tanker Oil Pollution Indemnification Agreement (STOPIA) 29 November 2004 No.04-012 We refer to our previous circular No.03-005 of 3 June 2004 entitled "International Supplementary Fund for Compensation to the 1992 Oil Pollution Compensation Fund Convention" With respect to the Small Tanker Oil Pollution Indemnification Agreement (STOPIA) and the Supplementary Fund Protocol (3rd Tier Protocol), the Club's Board of Directors decided, at their meeting on 29 November, the following:- 1.Decision In order to permit the implementation of the STOPIA scheme at the same time the 3rd Tier Protocol comes into force, the Board of Directors approved: 1)the finalization of the STOPIA agreement to be concluded voluntarily amongst Shipowners 2)the finalization of the additional provisions for the Memorandum of Understanding (MoU) between each Club in the International Group of P&I Clubs (IG) and the IOPC Fund 3)the introduction of a new STOPIA Special Clause in the Club Rules 2.STOPIA 1) Purpose The 3rd Tier Protocol increases the liability of the IOPC Fund for oil pollution damage. Presently, this increased level of liability will be borne solely by oil receivers. In consideration of this greater liability assumed by oil receivers, and to maintain the stability of the 1992 International Convention on Civil Liability for Oil Pollution Damage (1992 CLC) and the 1992 Oil Pollution Compensation Fund Convention (1992 FC), Shipowners have volunteered to increase their contribution to oil pollution damage. This will be achieved by indemnifying the 1992 Fund for a portion of its liability to claimants for damage caused by vessels of less than 29,548G/T. In so doing, STOPIA maintains the balance of contributions between the oil and shipping industries for oil pollution claims. It also preserves the existing 1992 CLC/FC regimes which have proven effective in providing prompt indemnification to eligible claimants. 2)Eligible ship A tanker regulated by the 1992 CLC of not more than 2